RSA records Q3 underwriting loss in UK, London market
RSA’s UK and London market business made an underwriting loss of around £70 million with a combined ratio of around 110 percent in the third quarter of 2018.
The losses were driven by higher weather, large losses and attritional claims, the insurers said in a trading update. The marine portfolio was the hardest hit, according to the statement. The company faced large and weather losses above expected levels in the third quarter overall, but they were particularly elevated in the UK.
In Scandinavia, attractive growth continues in Swedish personal lines with policy counts, retention and rate all contributing, RSA said. The firm also sees positive trends continuing in Canada with Johnson, personal broker and commercial premiums all up in a hardening market. UK premiums, however, remain lower than 2017 as pricing and re-underwriting action is taken.
The combined ratio in Scandinavia was around 84 percent in the third quarter of 2018; in Canada 94.5 percent, in Ireland 88 percent and in the Middle East 81 percent.
“RSA’s international businesses performed well in Q3, making strong progress against our best-in-class ambitions,” said RSA CEO Stephen Hester. “However, our UK and ‘London market’ business reported an underwriting loss which is disappointing. Actions to improve in the UK are well underway and we are determined to restore satisfactory performance whilst continuing our progress internationally.”
Overall, the group’s net written premiums in the first nine months were up around 1 percent year on year at £4.9 billion net of changes in reinsurance but down 2 percent at a headline level.
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